Saudi Arabia, UAE to give $3bn to Yemen in new peace push

Saudi Arabia and the UAE decided to provide $3bn to Yemen to support the country’s economy.

The Gulf states will provide $1bn each to the Yemen’s central bank, state-run Saudi Press Agency reported. Saudi Arabia will also provide $1bn for the purchase of oil products and to support of development projects.

A Saudi Arabia-led military coalition has been battling Iranian-backed Houthi fighters in Yemen since 2015. The Houthis have escalated attacks on Saudi energy and military facilities in recent weeks, as well as making their first attack on the UAE this year.

Saudi Arabia “urges the presidential council to start negotiations with the Houthis, under the supervision of the United Nations, to reach a final and comprehensive political solution which includes a transitional period that will move Yemen to peace and development,” according to the Saudi Press Agency.

Earlier, Yemen’s President Abd Rabbuh Mansur Hadi fired his deputy Ali Mohsen Al Ahmar.

The United Nations earlier this month said all sides in Yemen’s seven-year conflict agreed to a two-month truce starting April 2, a breakthrough in efforts to ease a dispute that’s triggered a humanitarian crisis and roiled the oil-exporting Gulf.

Under the terms of the cease-fire, ships carrying fuel will be able to enter the Houthi-controlled Hodeidah port, while commercial flights can operate in and out of Sana’a airport to some destinations in the region.

Saudi Arabia also said Thursday it will provide $300m to the UN humanitarian programme in Yemen.